Financial Data and Key Metrics Changes - The company reported a net income of $30,500,000 or $0.99 per diluted share for Q1 2025, compared to $14,200,000 or $0.47 per diluted share in the same quarter last year, reflecting a significant increase in profitability despite $31,800,000 in losses related to California wildfires [5][14] - Gross premiums earned rose to $353,800,000, up 3.6% from $341,400,000 in the prior year quarter, driven by higher gross premiums written [15] - Net premiums earned increased to $200,000,000, up 11.5% from $179,400,000 in the prior year quarter, reflecting growth in gross premiums earned and a reduction in ceded premiums [15] - The loss ratio improved to 49.7%, down from 56.9% in the same quarter last year, indicating better underwriting performance [17] - The net combined ratio for the quarter was 84.5%, down 9.5 points from 94% in the prior year quarter, driven by lower net loss and expense ratios [19] Business Line Data and Key Metrics Changes - The policy count decreased by 3% from Q4 2024, primarily due to normal attrition and seasonality, although there was early ramp-up in new personal lines business production [6] - The company is selectively writing new personal lines business while maintaining a focus on risk management and stringent underwriting [10] Market Data and Key Metrics Changes - The company has achieved rate adequacy in over 90% of its operating regions, positioning it to grow personal lines policies in force [6] - The competitive landscape in the commercial residential market is intensifying, but the company remains committed to ensuring rate adequacy without sacrificing profitability [7] Company Strategy and Development Direction - The company is pivoting its strategy towards managed growth by opening new territories for personal lines business, with nearly 75% of production capacity open as of April 2025 [9][10] - Legislative changes in Florida are expected to positively impact the economics of writing new profitable business, potentially reducing reinsurance pricing in 2026 [10][11] - The company is focusing on enhancing rate adequacy, managing exposure, and investing in technology and infrastructure to drive long-term shareholder value [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability despite catastrophe losses, attributing this to strategic initiatives implemented over the years [6][14] - The company anticipates an increase in premiums in force in the second half of the year, with expectations for growth to accelerate in 2026 as new business production ramps up [8][10] - Management noted that favorable legislative impacts are contributing to improved loss trends, which are expected to remain stable [31] Other Important Information - The company ended the quarter with total assets of $2,200,000,000 and shareholders' equity of $329,000,000, with book value per share increasing to $10.62 [20] Q&A Session Summary Question: Guidance on ceded premium dollars for Q2 and Q3 - Management indicated that ceded premium dollars are expected to increase slightly for the remainder of the year, but not significantly [23][25] Question: Outlook on rates over the next few years - Management stated that they are focused on maintaining rate adequacy and will adjust rates as necessary based on the regulatory environment [26] Question: Competition in personal lines and new distribution - Management clarified that they are gradually reopening existing distribution channels and are prepared to compete with new entrants in the market [29] Question: Understanding the dynamics of PIFs and premiums in Florida - Management explained that the decrease in premiums is due to less substantial rate increases and increased competition in the commercial markets [36][37] Question: Competitive environment by state - Management noted that Florida is seeing new entrants, while other states remain stable, with California experiencing more opportunities due to admitted carriers leaving the state [44][46]

Core Insights - Heritage Insurance (HRTG) reported a revenue of $211.52 million for the quarter ended March 2025, reflecting a year-over-year increase of 10.6% [1] - The earnings per share (EPS) for the quarter was $0.99, significantly higher than the $0.47 reported in the same quarter last year, resulting in an EPS surprise of +115.22% against the consensus estimate of $0.46 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $213.69 million, showing a surprise of -1.01% [1] Financial Metrics - Ceded Premium Ratio stood at 43.5%, better than the average estimate of 44.1% based on two analysts [4] - Combined Ratio was reported at 84.5%, significantly lower than the estimated average of 96.9% by two analysts [4] - Expense Ratio was 34.8%, closely aligning with the average estimate of 34.9% [4] - Net investment income was $8.58 million, slightly below the estimated $8.85 million, representing a year-over-year change of +0.3% [4] - Net premiums earned were reported at $200.03 million, compared to the average estimate of $201.50 million, indicating a year-over-year increase of +11.5% [4] - Other revenue was $2.92 million, lower than the estimated $3.34 million, reflecting a year-over-year decrease of -12.4% [4] Stock Performance - Heritage Insurance shares have returned +40% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for continued outperformance in the near term [3]

Core Viewpoint - Heritage Insurance (HRTG) reported quarterly earnings of $0.99 per share, significantly exceeding the Zacks Consensus Estimate of $0.46 per share, and up from $0.47 per share a year ago [1][2] Earnings Performance - The earnings surprise for the quarter was 115.22%, following a previous surprise of 26.92% when actual earnings were $0.66 per share against an expectation of $0.52 [2] - Over the last four quarters, Heritage Insurance has consistently surpassed consensus EPS estimates [2] Revenue Performance - The company reported revenues of $211.52 million for the quarter, which was 1.01% below the Zacks Consensus Estimate, but an increase from $191.3 million year-over-year [3] - Heritage Insurance has exceeded consensus revenue estimates three times in the last four quarters [3] Stock Performance - Since the beginning of the year, Heritage Insurance shares have increased by approximately 65.3%, contrasting with a decline of 3.9% in the S&P 500 [4] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.79 for the upcoming quarter and $2.43 for the current fiscal year [5][8] - The Zacks Rank for Heritage Insurance is currently 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - The Insurance - Property and Casualty industry is ranked in the top 17% of over 250 Zacks industries, suggesting a favorable environment for stock performance [9]

Exhibit 99.1 Heritage Reports First Quarter 2025 Results Tampa, FL – May 6, 2025: Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported first quarter of 2025 financial results. First Quarter 2025 Result Highlights "Our first quarter results have once again demonstrated the resilience of our business model as a property insurer operating in catastrophe exposed geographies," remarked Ernie Garateix, Herita ...

TAMPA, Fla., May 6, 2025 /PRNewswire/ -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company, today reported first quarter of 2025 financial results.First Quarter 2025 Result Highlights Net income of $30.5 million or $0.99 per diluted share, improved from net income of $14.2 million or $0.47 per diluted share in the prior year quarter. First quarter 2025 included a net pre-tax impact of $31.8 million of net losses an ...

Heritage Insurance (HRTG) is expected to witness an improvement in its top line but a decline in its bottom line when it reports first-quarter 2025 results on May 6. The Zacks Consensus Estimate for HRTG’s first-quarter revenues is pegged at $213.7 million, indicating an 11.7% increase from the year-ago reported figure.The consensus estimate for earnings is pegged at 46 cents per share. The Zacks Consensus Estimate for HRTG’s first-quarter earnings has witnessed no movement in the past 30 days. The estimate ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are underva ...

Heritage Insurance (HRTG) shares ended the last trading session 7.4% higher at $17.43. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.3% gain over the past four weeks.Heritage Insurance is poised to grow on better pricing, increasing top line, expanding margins and solid earnings as well as growing commercial residential business. Heritage Insurance remains focused on augmenting profitability by selective profi ...

In order to see if HRTG is a promising momentum pick, let's examine some Momentum Style elements to see if this property and casualty insurance holding company holds up. Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a cou ...

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. HRTG has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.32. Finally, investors should note that HRTG has a P/CF ratio of 6.54. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on t ...